The comparative financial statements of Harbour View for 2017, 2016, and 2015 included the selected data shown below:

Required
1. Compute these ratios for 2017 and 2016:
a. Current ratio
b. Acid-test ratio
c. Days' sales in receivables
2. Write a memo explaining to Jack Dodds, owner of Harbour View, which ratio values showed improvement from 2016 to 2017, and which ratio values showed deterioration. Discuss whether these factors convey a favourable or an unfavourable impression about the company.

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2017 2016 2015 (in millions) Balance Sheet Current assets: $ 560 340 520 680 40 $2,140 $1,200 $ 580 280 560 Cash Short-term investments Receivables, net Inventories Prepaid expenses S 520 252 488 600 80 $1,940 $1,320 100 $ 2,240 1,160 Total current assets Total current liabilities Income Statement Sales revenue $11,680 $10,220 $8,400